I assume this is an M103 engine. Had you been referring to an M104, I would assume the leak would be the seal on the front timing cover, not the head gasket, which typically leaks at the rear on the M104.
If the head is not badly warped, it can be "resurfaced" within manufacturers specs. The block is either cast iron or iron alloy, so it's not likely to be the source of the leak. Removal of too much material affects the compression ratio dramatically.
My engine doesn't appear to be too hairy, so I've foregone "electrolysis" for now...
